MYOMO's Losses Double Amid Soaring Revenue and Expenses

TL;DR

**MYO's burning cash faster than it's growing, making the recent capital raise a necessary lifeline, not a growth accelerator.**

AI Summary

MYOMO, INC. (MYO) reported a significant increase in net loss for the nine months ended September 30, 2025, reaching $11,759,946, a substantial rise from $5,923,648 in the same period of 2024. This was despite a robust revenue increase to $29,574,746 for the nine months ended September 30, 2025, up from $20,482,742 in 2024, representing a 44.4% growth. The company's gross profit also grew to $19,104,050 from $14,570,110 year-over-year. However, operating expenses surged, with selling, clinical, and marketing expenses increasing to $14,883,936 from $8,540,161, and research and development costs rising to $5,319,015 from $3,212,309. Cash and cash equivalents decreased significantly to $12,553,558 as of September 30, 2025, from $24,372,373 at December 31, 2024. The company secured $17.5 million in committed capital from Avenue Capital Management II, L.P. on November 4, 2025, with $12.5 million funded at closing, to address its liquidity needs and fund operations for at least the next twelve months.

Why It Matters

MYOMO's substantial increase in net loss, despite strong revenue growth, signals a critical juncture for investors. The company's aggressive spending on selling, clinical, marketing, and R&D indicates a push for market share and product development in the competitive medical robotics space. While the recent $17.5 million capital infusion provides a near-term liquidity buffer, the long-term viability hinges on converting increased revenue into profitability. Employees and customers might see continued investment in product innovation, but the company's ability to scale efficiently without further diluting shareholder value remains a key concern for the broader market.

Risk Assessment

Risk Level: high — MYOMO's net loss more than doubled to $11,759,946 for the nine months ended September 30, 2025, from $5,923,648 in the prior year, indicating a significant increase in cash burn. Cash used in operating activities also surged to $13,370,955 from $6,655,632. The accumulated deficit of $114,874,483 as of September 30, 2025, highlights a history of unprofitability and dependence on external financing, despite the recent capital infusion.

Analyst Insight

Investors should exercise extreme caution and closely monitor MYOMO's path to profitability. While the recent $17.5 million capital raise provides short-term liquidity, the company's escalating losses and cash burn suggest a high-risk investment. Consider waiting for clear evidence of improved operational efficiency and a reduction in net losses before taking a position.

Financial Highlights

revenue

$29,574,746

net Income

-$11,759,946

gross Margin

64.6%

cash Position

$12,553,558

revenue Growth

+44.4%

Key Numbers

• $11.8M — Net Loss (Increased from $5.9M in 2024 for the nine months ended September 30, 2025)
• $29.6M — Revenue (Increased from $20.5M in 2024 for the nine months ended September 30, 2025)
• $13.4M — Cash Used in Operating Activities (Increased from $6.7M in 2024 for the nine months ended September 30, 2025)
• $12.6M — Cash and Cash Equivalents (Decreased from $24.4M at December 31, 2024)
• $17.5M — Committed Capital (Secured on November 4, 2025, with $12.5M funded at closing)
• 44.4% — Revenue Growth (Year-over-year increase for the nine months ended September 30, 2025)
• 100% — Net Loss Increase (Approximate year-over-year increase for the nine months ended September 30, 2025)
• $14.9M — Selling, Clinical and Marketing Expenses (Increased from $8.5M in 2024 for the nine months ended September 30, 2025)
• $5.3M — Research and Development Expenses (Increased from $3.2M in 2024 for the nine months ended September 30, 2025)
• $114.9M — Accumulated Deficit (As of September 30, 2025, indicating historical losses)

Key Players & Entities

• MYOMO, INC. (company) — Registrant
• Avenue Capital Management II, L.P. (company) — Administrative agent and collateral agent for new loan
• Avenue Venture Opportunities Fund II, L.P. (company) — Lender for new loan
• Silicon Valley Bank (company) — Provider of existing Loan and Security Agreement
• U.S. Food and Drug Administration (regulator) — Regulates MyoPro as a Class II medical device
• $11,759,946 (dollar_amount) — Net loss for nine months ended September 30, 2025
• $29,574,746 (dollar_amount) — Revenue for nine months ended September 30, 2025
• $13,370,955 (dollar_amount) — Cash used in operating activities for nine months ended September 30, 2025
• $17.5 million (dollar_amount) — Committed capital from Avenue Capital Management II, L.P.
• $12.5 million (dollar_amount) — Amount funded at closing of Avenue Capital loan on November 4, 2025

FAQ

Risk Factors

• Significant Increase in Net Loss and Cash Burn [high — financial]: The company reported a net loss of $11,759,946 for the nine months ended September 30, 2025, a substantial increase from $5,923,648 in the prior year period. This widening loss, coupled with a significant decrease in cash and cash equivalents from $24,372,373 at December 31, 2024, to $12,553,558 as of September 30, 2025, highlights a critical liquidity challenge.
• Dependence on External Financing [high — financial]: MYO secured $17.5 million in committed capital from Avenue Capital Management II, L.P., with $12.5 million funded at closing on November 4, 2025. This reliance on external financing, especially given the substantial cash burn, indicates ongoing financial vulnerability and potential dilution for existing shareholders.
• Surge in Operating Expenses [high — operational]: Selling, clinical, and marketing expenses increased dramatically to $14,883,936 from $8,540,161 year-over-year, and R&D costs rose to $5,319,015 from $3,212,309. While revenue grew by 44.4%, these expense increases outpaced revenue growth, contributing to the widening net loss.
• Competitive Market Landscape [medium — market]: The medical device market, particularly in assistive technologies, is highly competitive. MYO faces competition from established players and emerging companies, requiring continuous innovation and significant investment in sales and marketing to maintain and grow market share.
• Regulatory Compliance and Approval Processes [medium — regulatory]: As a medical device company, MYO is subject to stringent regulatory requirements from bodies like the FDA. Delays or failures in obtaining regulatory approvals for new products or maintaining existing ones can significantly impact revenue and market access.
• Accumulated Deficit [medium — financial]: The company has an accumulated deficit of $114.9 million as of September 30, 2025. This indicates a history of net losses, underscoring the long-term challenge of achieving profitability and sustainable financial health.

Industry Context

MYOMO, INC. operates in the competitive medical technology sector, specifically focusing on assistive robotics for rehabilitation. The industry is characterized by rapid technological advancements, significant R&D investment requirements, and a complex regulatory approval process. Companies in this space must balance innovation with market access and reimbursement challenges.

Regulatory Implications

As a medical device manufacturer, MYO is subject to rigorous oversight by regulatory bodies such as the FDA. Compliance with quality standards, obtaining and maintaining product clearances or approvals, and adhering to post-market surveillance requirements are critical. Any regulatory setbacks could significantly impact product launch timelines and market availability.

What Investors Should Do

1. Monitor the company's cash burn rate and the effectiveness of the new financing in extending its runway.
2. Analyze the drivers behind the significant increase in operating expenses, particularly in sales, clinical, and marketing, to assess efficiency and return on investment.
3. Evaluate the competitive landscape and MYO's ability to differentiate its products and gain market share amidst increasing R&D and marketing investments.
4. Assess the long-term sustainability of the business model given the persistent accumulated deficit and reliance on external capital.

Key Dates

• 2025-09-30: Nine months ended September 30, 2025 financial results reported — Revealed a significant increase in net loss and revenue, alongside a substantial decrease in cash reserves, highlighting increased operational costs and liquidity concerns.
• 2025-11-04: Secured $17.5 million in committed capital — Provided crucial liquidity to fund operations for at least the next twelve months, addressing immediate cash needs but also indicating reliance on external financing.

Glossary

Accumulated Deficit

The total cumulative net losses of a company since its inception, minus any cumulative net profits. (Indicates MYO's historical unprofitability, with a deficit of $114.9 million as of September 30, 2025.)

Cash Burn Rate

The rate at which a company spends its cash reserves, particularly when it is not yet profitable. (The significant increase in net loss and decrease in cash position suggests a high and increasing cash burn rate for MYO.)

Committed Capital

A formal agreement where a lender or investor commits to provide a certain amount of funding under specified conditions. (MYO's $17.5 million committed capital from Avenue Capital Management II, L.P. is critical for its short-term operational survival.)

Year-Over-Year Comparison

MYOMO, INC. has experienced a significant increase in its net loss for the nine months ended September 30, 2025, nearly doubling from the prior year period, despite a robust 44.4% revenue growth. This widening loss is primarily driven by a substantial surge in operating expenses, particularly in selling, clinical, and marketing, and R&D. Consequently, the company's cash position has been significantly depleted, necessitating the recent securing of substantial committed capital to ensure operational continuity.

Key Financial Figures

• $0.0001 — nge on which registered Common Stock, $0.0001 par value per share MYO NYSE Americ

Filing Documents

• myo-20250930.htm (10-Q) — 1907KB
• myo-ex31_1.htm (EX-31.1) — 11KB
• myo-ex31_2.htm (EX-31.2) — 11KB
• myo-ex32_1.htm (EX-32.1) — 5KB
• myo-ex32_2.htm (EX-32.2) — 5KB
• 0001193125-25-274278.txt ( ) — 8345KB
• myo-20250930.xsd (EX-101.SCH) — 1172KB
• myo-20250930_htm.xml (XML) — 1535KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements (interim periods unaudited)

Item 1. Financial Statements (interim periods unaudited) 1 Condensed Consolidated Balance Sheets at September 30, 2025 and December 31, 2024 1 Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2025 and 2024 2 Condensed Consolidated Statements of Comprehensive Loss for the three and nine months ended September 30, 2025 and 2024 3 Condensed Consolidated Statements of Changes in Stockholders' Equity for the three and nine months ended September 30, 2025 and 2024 4 Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2025 and 2024 5 Notes to Unaudited Condensed Consolidated Financial Statements 6

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 19

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 25

Controls and Procedures

Item 4. Controls and Procedures 26

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 28

Risk Factors

Item 1A. Risk Factors 28

Unregistered Sales of Equity Securities and Use of Proceeds from Registered Securities

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds from Registered Securities 31

Other Information

Item 5 Other Information 31

Exhibits

Item 6. Exhibits 32

Signatures

Signatures 33 Part 1. FINANC IAL INFORMATION

Financ ial statements

Item 1. Financ ial statements MYOMO, INC. CONDENSED CONSOLIDATED BAL ANCE SHEETS (unaudited) September 30, December 31, 2025 2024 ASSETS Current Assets: Cash and cash equivalents $ 12,553,558 $ 24,372,373 Short-term investments — 492,990 Accounts receivable, net 5,292,520 3,825,291 Inventories 3,645,314 3,165,965 Prepaid expenses and other current assets 1,457,595 933,377 Total Current Assets 22,948,987 32,789,996 Restricted cash 375,000 375,000 Operating lease assets with right of use, net 6,870,283 7,584,663 Equipment, net 3,714,810 1,330,008 Other assets 168,350 164,412 Total Assets $ 34,077,430 $ 42,244,079 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable and accrued expenses 6,668,162 9,021,817 Current operating lease liability 464,239 748,021 Income taxes payable 351,974 318,885 Deferred revenue 134,750 83,115 Current portion long-term debt 583,333 — Revolving credit line 1,000,000 — Total Current Liabilities 9,202,458 10,171,838 Non-current operating lease liability 7,832,722 7,358,184 Long-term debt 2,416,667 — Total Liabilities 19,451,847 17,530,022 Commitments and Contingencies — — Stockholders' Equity: Preferred stock, $ 0.0001 par value; 10,000,000 shares authorized; no shares issued or outstanding — — Common stock par value $ 0.0001 per share, 65,000,000 shares authorized; 38,433,287 and 34,378,297 shares issued as of September 30, 2025 and December 31, 2024, respectively; and 38,433,260 and 34,278,270 shares outstanding at September 30, 2025 and December 31, 2024, respectively 3,843 3,439 Additional paid-in capital 129,365,034 127,846,026 Accumulated other comprehensive income (loss) 137,653 ( 14,406 ) Accumulated deficit ( 114,874,483 ) ( 103,114,538 ) Treasury stock, 27 shares at cost ( 6,464 ) ( 6,464 ) Total Stockho

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